STO process

Contents
Overview ................................................................................................................................................................................. 1
STO Types ............................................................................................................................................................................ 1
Config ...................................................................................................................................................................................... 4
Master data ........................................................................................................................................................................... 11
Supplying plant.................................................................................................................................................................. 11
Receiving plant .................................................................................................................................................................. 13
Material Master ................................................................................................................................................................ 15
End user steps ....................................................................................................................................................................... 21
Intercompany STO with delivery and W/o shipping notification ..................................................................................... 21
Stock transfer with STO (only purchasing document, no delivery) .................................................................................. 33
STO with delivery - ONE step procedure .......................................................................................................................... 36

Overview

Typically, stock transfer is created from Stock transport requisition.

Stock transport requisition gets created via MRP run. It is a planning process where requirement from one plant goes to
another plant and MRP create STR which gets converted to STO.

But in xyz business, user create STO directly to move stock so we will just talk about this process where user manually
create STO.

STO Types
Stock transfer without STO (purchasing document). Pure IM movement

Materials can be transferred in inventory management (no sales, no delivery). Why do we use these following transactions, we use
these transactions when product is not physically moving so logistics team doesn’t need to be part of it.

1. One step – using 301 movement type. Plant to plant transfer. One material document. No tracking of material. Freight cost
& delivery cost can’t be captured. Also called transfer posting
2. Two step – Using 303 & 305 movement type. Two material documents. Freight cost and delivery cost can’t be captured.
Also called transfer posting

Stock transfer with STO (only purchasing document, no delivery)

pg. 1
STO with purchasing document only- UB. Goods issue with 351 movement type and GR with 101 movement type. Freight cost and
delivery cost can be captured.

Advantages of creating STO:

1. A goods receipt can be planned in the receiving plant.

2. You can enter a vendor (freight vendor) in the stock transport order.
3. Delivery costs can be entered in the stock transport order.
4. The stock transfer order is part of MRP: Purchase requisitions that were created in MRP can be converted into stock
transport orders.
5. The system can run an availability check for the stock transfer.

So if business require any of these shown above then, we should create STO document.

Why we need delivery document in STO?

We need delivery document if we are physically moving the product from bangalore to delhi so our logistics team would be involved.

STO with delivery can be created in two ways:

1. STO with shipping notification

STO would be created with confirmation control key and inbound delivery would be used to do goods receipt
2. STO without shipping notification
STO would be created without confirmation control key and STO would be used to do goods receipt.

Normally when SD delivery creates, it needs sales order to get information like: ship to customer, material, quantity, delivery date,
shipping condition, route, shipping point. All these information would be available in STO document. Shipping tab comes only for
STO scenario not for normal purchase from vendor. Shipping tab: have all the info like ship to customer, sales area, shipping
condition, delivery type, shipping point etc.

Why do we need shipping notification- inbound delivery, what is the business case?

➢ If product needs to be put away by receiving logistics team.

➢ Product needs to be tracked in logistics
➢ Document flow can be seen, and inbound delivery can store outbound delivery.
➢ Variance in GR can be captured
➢ ASN( DESADV) idoc can be used for creating inbound delivery if outbound delivery is in different system.

STO with delivery are of two types in SAP:

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 1. Intra company – stock movement within one company code (standard doc. Type: UB, UD). Movement type: 641
Standard Delivery type: NL, schedule line category: NN. No AR & AP invoice
We can do this from plant to plant or storage location to storage location within plant.
Company code should be same.
2. Intercompany – Stock movement from one company code to another company code (Standard doc. Type: NB)
Standard Delivery type: NLCC, schedule line category: NC, Intercompany AR invoice: IV, AP invoice: RE

STO with delivery are of two types with respect to receiving:

1. One step STO

Outbound delivery is used for good receipt in MIGO. Material won’t be shown in goods in transit. Movement type: 645
645 movement will goods issue and goods receipt at same time ( not used in xyz and pqr business )
2. Two step STO
Outbound delivery is goods issued and material goes to in transit. MB5T would show material in transit once goods are
issued. Movement type: 643

It is setup in config. – one step or two step from supplying – receiving plant combination.

STO – return setup

Used in PQR business.

Other movement types for different returns are:

1. Intra company STO

(1) One step – 677 movement type
(2) Two step – 671 movement type
2. Intercompany STO
(1) One step – 675 movement type
(2) Two step – 673 movement type

Negative goods receipt is 161 in IM.

Stock transfer SAP link:

https://help.sap.com/saphelp_erp60_sp/helpdata/en/4d/4b9036dfe4b703e10000009b38f889/frameset.htm

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Config
Materials Management-> Purchasing -> Purchase Order -> Set up Stock Transfer Order -> Define Shipping data for Plants

pg. 4
When we are shipping from NL12, that means Sales area information would be fetched from SPRO to shipping tab in STO

When we are receiving, then Customer number would be fetched from SPRO to shipping tab in STO.

This customer must be created before hand before we do this above config. This is just the assignment of customer to plant.

SPRO->Materials Management-> Purchasing -> Purchase Order -> Set up Stock Transfer Order -> Assign Delivery type and checking
rule

This below setting decide delivery type based on Supplying plant and & doc. Type.

pg. 5
Path-> Sales and Distribution-> Billing-> Intercompany Billing-> Automatic posting to Vendor Account

Tcode: WEL1

RD04 output

Tcode:WEL1

Application: V3

Logical address 0621ARSQ0603

This above logical address consists of:

a) Delivering company code consisting of four digits: 0621 (Netherland company code)

b) Customer number consisting of ten digits: ARSQ0603 (for eg. 0000000001)

pg. 6
Target:

Company code: 0603 (GB – receiving company code)

Vendor: APSQ0621 (Netherland Invoicing party of vendor: APSQNL12)

Follow SAP note for more details:

31126 - Intercompany billing - posting to vendor account with EDI

Other than this, we need to maintain:

Path

SPRO-> Financial Accounting-> Accounts receivables and account payables-> Business Transactions-> EDI

pg. 7
OBCA, OBCB, OBCC ,OBCD, OBCE

OBCD

OBCE:

pg. 8
Path-> sales org - dist channel - plant

SPRO-> Enterprise Structure-> Assignment -> Sales and Distribution-> Assign Sales Org – Distribution channel- plant

Shipping point determination

pg. 9
SPRO -> Logistics Execution-> Shipping -> Basci Shipping function -> Assign Shipping point

Other config related to this

Billing type needs to be assigned output determination procedure: v4000

pg. 10
Master data

Supplying plant
NL12 should be created as vendor in company code of receiving company code.

pg. 11
APSQ0621 is invoicing party mean AP invoice would be posted for APSQ0621 in company code: 0603

pg. 12
Receiving plant
Gb01 should be created as customer in sales area of shipping company code

pg. 13
We20 setup

pg. 14
Material Master
Material should be created in purchasing view in receiving company code

pg. 15
Material should be created in sales view in supplying company code.

pg. 16
Condition records

Material should be maintained in MEK2 – purchasing gross price. Tcode: MEK1,MEK2

pg. 17
Material should be maintained as quality management active as shown below. Tcode: MM03

Material should be maintained in Quality info record for vendor. Tcode: QI01/QI02

pg. 18
pg. 19
Material should be maintained as pricing records in ZPI1. Tcode: VK11,VK12

Output records

pg. 20
Example time
xyz business wants to send product from NL12 to GB01

PQR business wants to send product from

End user steps

Intercompany STO with delivery and W/o shipping notification

1. Create sto . Tcode: ME21N (Doc. Type: ZFP)

Receiving plant: GB01
pg. 21
 Supplying plant: NL12

2. Outbound delivery. VL10B for creation. VL02N for pick, pack & goods issue

3. Goods receipt. MIGO for STO

5. AR Invoice posted. Batch job creates invoice

6. Rd04 idoc post AP invoice - Automatic

7. AR invoice cancelled (optional)

8. Rd04 idoc post ap invoice which cancels earlier ap invoice(optional)

Screenshots:

1. Create sto. Tcode: ME21N (Doc. Type: ZFP)

Receiving plant: GB01
Supplying plant: NL12

STO created by purchasing department of Receiving company code.

2. Outbound delivery. VL10B for creation. VL02N for pick, pack & goods issue
pg. 22
Ship to party: ARSQGB01

After goods issue- 643 movement type. Material document posted

WL -doc type

Normal cogs get debit entry and Inventory account gets credit entry (Inventory reduces at supplying company code)

pg. 23
 3. Goods receipt. MIGO

Debit posting to Material ledger account. And credit posting to GR/IR & purchase price variance account gets credited.

Why purchase price variance is posted because material is valuated at standard cost in receiving plant

And there is a difference in purchase price and invoice price. GR was done 796,277.30 and invoice is created for 819,724.80

So Purchase price variance gl account: 7510000 gets hit with 23,447.50

pg. 24
Above entries are standard way of posting intercompany STO as prescribed by standard SAP

HELP.SAP link

https://help.sap.com/saphelp_erp60_sp/helpdata/en/29/62bd534f22b44ce10000000a174cb4/content.htm?loaded_from_frameset
=true

4. AR Invoice posted. Batch job creates invoice

Payer is ARSQ0603 which is payer of ship to customer: ARSQGB01 (plant: GB01)

pg. 25
Price determined from condition records.

pg. 26
Accounting document RV as normal sales is posted.

AR account: ARSQ0603 is debited and revenue is credited just like any normal sales.

5. Rd04 idoc post ap invoice – Automatic

pg. 27
Click on relationship button. You’ll see idoc.

Click on relationship button in idoc and you’ll see AP invoice document. You can double click and reach AP document.

pg. 28
Vendor invoice: KR can be seen for Invoicing party: APSQ0621 of vendor: ASPSQNL12

pg. 29
KR invoice gets posted.

Similar to any other purchasing transaction, vendor : APSQ0621 gets credit entry and GR/IR gets debit entry

6. AR invoice cancelled (optional)

pg. 30
8. Rd04 idoc post ap invoice which cancels earlier ap invoice(optional)

Reversal of vendor invoice is credit memo is created for this

pg. 31
pg. 32
Stock transfer with STO (only purchasing document, no delivery)

IDES system

Steps:

1. STO creation
2. Goods issue of STO – 351 movement type
Accounting document gets posted when stock moves from 1010 to 1030 – in transit
3. Goods receipt of STO – 101 movement type. Stock moves from in transit to unrestricted.
No accounting document would be generated.

Master data:

both plant belong to same company code: 1010

STO document only. Material move from 1010 plant to 1030 plant as shown in Fiori screenshot

pg. 33
Migo step where we do goods issue of above STO.

pg. 34
Mb5t

Supplying plant: 1010. Receiving plant: 1030

pg. 35
STO with delivery - ONE step procedure

Movement type:

Supply plant: 1010

Receiving plant: 1710

pg. 36
We can do picking, goods issue process.

See movement type: 645

pg. 37
See material document

It has both 645 and 101 at same time. Material doesn’t goto in transit stock.

pg. 38
pg. 39
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